Bluerock Resources Ltd.

Bluerock Resources Ltd.

November 02, 2006 09:00 ET

Bluerock Resources Ltd. Signs Option Agreement on La Sal West Project, San Juan County, Utah

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 2, 2006) - Bluerock Resources Ltd. (the Company) (TSX VENTURE:BRD) announces it has signed an option agreement with Terra Resource Management Ltd. (the Vendor) on the La Sal West Uranium/Vanadium project in San Juan County, Utah. The project consists of 21 BLM surface/subsurface claims in the La Sal West and La Sal junction Quadrangles, south of Moab, Utah. An additional 90 claims have been staked within the Area of Mutual Interest for a total of 111 claims which are subject to the option agreement. The project area covers a portion of the north and central La Sal District trend and contains three past producers; the Bluejay, M6 and Balsley Mines.

Under the terms of the option agreement, which is subject to due diligence and Exchange approval, the Company will earn a 100% interest in the La Sal West project from the vendor by completing exploration expenditures of US $650,000, payments of US $255,000 and the issuance of 500,000 common shares and 500,000 common share warrants defined below:

- US $10,000 was paid on signing, and US $20,000 is due on the earlier of completion of due diligence and Exchange acceptance.

- Expenditures of US $650,000 over 4 years.

- Payments of US $220,000 over year 4 years with advanced royalty payments of US $50,000 starting in the 5th year which are extinguished on the production and sale of 50,000 tons of ore.

- 500,000 common shares of the Company in four tranches, 75,000 on acceptance by the Exchange, 75,000 on the first anniversary of the signing of the agreement, 150,000 on the second anniversary of the signing of the agreement and 200,000 on the third anniversary of the signing of the agreement.

- 500,000 common share warrants to be issued on exchange approval exercisable over 2 years at the Company's trading price on the date of Exchange approval.

The Vendor will retain a 3% NSR on production, half of which may be purchased for US $1,000,000 and 500,000 common shares of the Company.

The option agreement may be terminated on thirty days notice with the requirement that the claims be maintained in good standing for a period of one year from notice of termination.

The host of known uranium mineralization, the Brushy Member of the Morrison Formation was exploited on surface and to depths of less than 150 metres below surface on the project. The Company believes that uranium mineralization extends beyond the limit of historic mining within the Brushy Member. The Company has identified preliminary drill targets at depths of less than 120m. Access to the project is excellent, with a network of drill roads and trails in existence. Three phase power lines, and a major E-W State Highway cross the southeast corner of the property.

The current spot price for U3O8 is US $60.00 a pound. In a press release dated June 14th 2006 International Uranium Corporation indicated it will be looking for toll milling feed for the White Mesa Uranium Mill, which is located approximately 160 Kilometres (100 miles), to the south west. The La Sal West Project therefore represents an attractive potential source location for this feed.

President Michael Collins commented: "Bluerock's option on the La Sal West Project leverages our current presence in the La Sal Uranium District where the Company holds an option on the Firefly Project. Our focus on high grade conventional uranium projects with past production and the potential for additional resource development of similar tenor has identified the La Sal West Project as a prime target. Bluerock intends to continue to grow its stable of conventional uranium assets in the US southwest."

Bluerock Resources Ltd. is a uranium exploration company focused on discovering tomorrow's energy today through the acquisition and development of conventional uranium resources.


Michael Collins, President

Bluerock Resources Ltd.

Statements contained in this document that are not historical facts are forward-looking statements as that term is defined in the private securities litigation reform act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filing with the B.C. Securities Commission. Paul D. Gray P.Geo. is the Qualified Person with respect to the La Sal West project.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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